How Tyler Winklevoss plans to go green with Bitcoin

For assets you can't actually hold, cryptos use a whole lot of energy.

| More on:
green bitcoin logo

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Bitcoin (CRYTPO: BTC) is in the green in more ways than one.

Firstly, the price is up 2% over the past 24 hours, to US$35,234 (AU$46,979). That brings the token's year-to-date gains back above 23%, according to data from CoinDesk.

Not bad, for investors who can stomach the wild volatility.

Secondly, the green light is on Bitcoin in regards to cutting its rocketing carbon footprint.

One heck of a carbon footprint

Bitcoin mining – verifying blockchain transactions and mining new tokens – uses a tremendous amount of energy. As much as all of the Netherlands, by recent estimates.

In a world that's focused on decarbonising to limit potential global warming, being an energy hog isn't a good look. Media attention – spurred by Tesla Inc (NASDAQ: TSLA) founder Elon Musk – of its huge carbon footprint is one reason Bitcoin's price has come under pressure in recent months.

It's also why some crypto miners are hoping to charge a 10% premium for Bitcoin that can be blockchain verified to have been mined by computers using only renewable energy.

Taking a different track…

Tyler Winklevoss has plans for green Bitcoin

Tyler Winklevoss is perhaps still best known for his legal stoush (alongside his twin brother Cameron) accusing Mark Zuckerberg of stealing their idea to launch Facebook, Inc. (NASDAQ: FB). A case which was eventually settled in 2008 with Zuckerberg paying out a large sum of money to the twins.

In more recent times Winklevoss has invested heavily in Bitcoin. He's currently the CEO of Gemini, the crypto exchange platform he founded.

And Gemini aims to make its Bitcoin usage climate friendly via a new endeavour called Gemini Green.

How?

According to the media release, Gemini is working with Climate Vault, a non-profit entity founded at the University of Chicago in the United States. The intent is to eliminate some 350,000 tonnes of CO2 related to Bitcoin's use, from the atmosphere.

Gemini Green will do this by buying carbon permits, through Climate Vault, directly from government-regulated cap-and-trade markets. These permits will then be removed from the market, which will reduce the total amount of carbon permits available.

Discussing the initiative, Tyler Winklevoss said:

As Bitcoin emerges as a dominant store of value, it's imperative that we incorporate sustainability for future generations. We are proud to team up with Climate Vault to offset our exposure to non-renewable mining and contribute to the decarbonising of Bitcoin.

Michael Greenstone, co-founder of Climate Vault added, "Climate Vault is providing a simpler, faster, and more reliable path to net-zero emissions, not just for traditional businesses, but now – thanks to Gemini – for the innovative world of cryptocurrency."

Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to its CEO, Mark Zuckerberg, is a member of The Motley Fool's board of directors. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and has recommended Bitcoin, Facebook, and Tesla. The Motley Fool Australia has recommended Facebook. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Cryptocurrencies

Bitcoin coins in a pile.
Cryptocurrencies

What's happening with the Bitcoin price amid the Trump tariff market panic?

You may have heard Bitcoin referred to as ‘digital gold’. But is it really a haven asset?

Read more »

A graphic picture of gold Bitcoins with the Bitcoin symbol lying on a desk with arrows shooting higher and one arrow lifting off the flat surface pointing to the sky.
ETFs

Dip your toes into cryptocurrency with these 2 ASX ETFs

Interested in cryptocurrency?

Read more »

Bitcoin symbol with a rising green arrow.
Cryptocurrencies

Bitcoin surges: How to invest through the ASX

Wanting to gain exposure to the cryptocurrency? Check out these two options.

Read more »

Bitcoin coins in a pile.
Cryptocurrencies

Here's what owning Bitcoin for 7 years has taught me

Bitcoin has been a fantastic investment for me, but not without its pitfalls.

Read more »

A woman holds a bitcoin token in her hand as she smiles at the camera in the background.
Cryptocurrencies

Bitcoin price surges on Donald Trump's cryptocurrency strategic reserve update

The Bitcoin price hit all-time highs of US$109,115 on the day Trump was sworn into office.

Read more »

Bitcoin coin with a rising arrow.
Cryptocurrencies

The Bitcoin price soared 120% in 2024. Could it repeat that performance in 2025?

Bitcoin soared by 150% in 2023 and 120% in 2024, so many crypto investors are expecting it to once again…

Read more »

Two happy excited friends in euphoria mood after winning in a bet with a smartphone in hand.
Cryptocurrencies

Why Bitcoin, Ethereum, and Dogecoin just surged

Today's CPI report turns out to mean a great deal to crypto investors.

Read more »

Bitcoin coin with a rising arrow.
Cryptocurrencies

Bitcoin price smashes new record highs as market value tops US$2.1 trillion

Bitcoin just soared to new all-time highs. But why?

Read more »